After an unprecedented year politically, socially, and economically, cannabidiol (“CBD”) continues to significantly impact the United States’ retail markets and even the health sector. This highly sought after cannabinoid is becoming increasingly common in various forms, including tinctures, topical applications, oils, capsules, and more. But what is next for CBD in 2021? Below we explain our predictions regarding CBD’s influence in the coming year.
Increase in the Sale of CBD Products
The CBD market has been booming for the past several years, and industry members believe that sales will continue to increase at a rapid rate. Hemp Benchmark’s November 2020 report shows that the hemp market’s volatility has recently subsided, indicating a predictable CBD market in 2021. A more stable hemp market allows farmers to more precisely predict revenue, thus facilitating better production methods, streamlined processes, and higher sales. In 2018, the CBD market was valued at an estimated $390 million, and market analysts expect that number to rise to more than $20 billion by 2024.
Impact of Marijuana Legalization on CBD
In the 2020 elections, many states passed legislation through ballots that legalized medicinal and recreational marijuana. States such as South Dakota, Mississippi, Montana, Arizona, and New Jersey legalized marijuana in some form, and progress of this nature is promising for hemp derivatives such as CBD, even though they lack direct correlation. As marijuana continues to become destigmatized and decriminalized, more and more pressure is placed on the U.S. Food and Drug Administration (“FDA”) to create a concrete set of rules and regulations with respect to CBD.
CBD Trends in the Stock Market
CBD continues to gain traction as a viable cannabinoid, as many reputable CBD companies have emerged over the last two years and are here to stay. Several CBD stocks have performed reasonably well, even throughout the global pandemic, such as Curaleaf Holdings Inc, GW Pharmaceuticals, and Canopy Growth. Additionally, the product range for CBD is expected to diversify and expand, as many companies experiment with CBD cream and topicals, pet products, and more. CBD industry members believe that investors’ interest will grow in 2021, following the sales trends, especially as the market becomes less and less volatile.
CBD Research and Regulation
CBD industry members anticipate progress regarding rules and regulations on the manufacturing, distribution, and marketing of CBD products. While the Biden Administration has shown signs of cooperation and support surrounding the marijuana movement, whether or not they will encourage the FDA’s efforts to approve the use of CBD in food remains to be seen. President-Elect Joe Biden consistently states that he is in favor of additional research before making cannabis federally legal, though his campaign has publicly committed to decriminalization. Expect to see a substantial increase in research and analysis into the medicinal value of CBD, especially considering the current health concerns around the globe.
CBD Lawyer Chelsie Spencer is extremely active in the cannabis, hemp, and CBD industries and remains dedicated to providing legal services and counsel to various businesses. With years of experience in CBD litigation, hemp and marijuana law, and copyrights and trademarks, Chelsie offers a unique perspective and unrivaled expertise for all of your CBD legal needs and requirements. Contact Ritter Spencer or call us at 214.295.5074 for more information.